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TMI Blog2003 (8) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... ing parts of washing machines has been assigned to the suppliers on job work basis. Mere facts that the suppliers were using their own raw-material for supplying parts of washing machines, cannot take them away from the category of job worker. Sub-rule (8) of Rule 57S of the Central Excise Rules, 1944, clearly provides that a manufacturer may, with the permission of the Commissioner and subject to such terms and conditions and limitation as he may impose, remove the moulds and dyes without payment of duty to job worker for the purpose of production of goods on his behalf and according to his specifications. Sub-rule (8) starts with the words Notwithstanding anything contained in sub-rule (1) and as such is a non obstante clause. This rule c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57S(8) of the Central Excise Rules, 1944; that the Assistant Commissioner has confirmed the demand against them on the ground that the job workers cannot be considered as job workers in as much as they were purchasing their own raw-materials for manufacturing the parts of washing machines and clearing the same on payment of duty; that the Commissioner (Appeals) also, in the impugned order, has rejected their appeals agreeing with the Assistant Commissioner that the relationship between the appellants and manufacturers of parts is on principal to principal basis. Learned Advocate, further, submitted that the question whether the job worker for the purpose of applying Rule 57S(8), can be a person who is using his own raw-material, has been s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in their judgment in M/s. Prestige Engineering (India) Ltd., supra, cannot be made applicable to the facts of the present case since the said judgment does not deal with the subject of capital goods sent to another party for job work as is the case in the present appeals." The ratio of the said decision squarely applies to the facts of the present matters. He also emphasised that it is not in dispute that the cost of moulds is amortised and added to compute the value of the parts manufactured by the job worker and on such value duty is discharged. 3. Countering the arguments, Shri D.N. Choudhary, learned S.D.R., submitted that the units are manufacturing parts of washing machines on their own account as they are buying the raw-materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them. He, further, contended that sub-rule (8) of Rule 57S provides for removal of moulds and dyes without payment of duty to job worker for the purpose of production of goods according to his specifications; that this sub-rule is a sort of exemption from payment of duty, and, therefore, has to be construed strictly and that moulds and dyes have to be supplied to a job worker for getting the benefit of sub-rule (8); that as the moulds and dyes have not been sent to the job worker in the present matters, the benefit of this sub-rule will not be available to the appellants. He also referred to G.P. Singh's Principles of Statutory Interpretation, in support of his contention that the intention of Legislature is to be gathered from the languag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the suppliers were using their own raw-material for supplying parts of washing machines, cannot take them away from the category of job worker. Sub-rule (8) of Rule 57S of the Central Excise Rules, 1944, clearly provides that a manufacturer may, with the permission of the Commissioner and subject to such terms and conditions and limitation as he may impose, remove the moulds and dyes without payment of duty to job worker for the purpose of production of goods on his behalf and according to his specifications. Sub-rule (8) starts with the words "Notwithstanding anything contained in sub-rule (1)" and as such is a non obstante clause. This rule clearly empowers the appellants to remove the moulds and dyes without payment of duty to the prem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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